Productive Benefits of Health: Evidence from Low-Income Countries

Schultz, T.

doi:10.2139/ssrn.645001

Cited by 36 publications

(11 citation statements)

References 28 publications

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“…Healthy persons remain more productive for society and their families (Schultz, 2005). Physical and mental fitness increases the performance of every individual and ultimately results in the form of higher wages (Bhargava, Jamison, Lau, & Murray, 2001).…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of Human Capital on Poverty Reduction in Pakistan

Naweed¹,

Saeed²,

Ali³

2022

iRASD J. Eco.

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This paper determines the impact of various health indicators on poverty reduction in Pakistan. Health indicators affect the Poverty through increasing Labor productivity and through improving Education. GNP per capita is a proxy variable for poverty reduction. Life Expectancy, infant mortality rate, total health Expenditures, and Population per doctor are explanatory variables in Model 1. The study has regressed these health indicators on Education in Model 2. To determine the Short-run and long run relationship among the variables the research applied the Co-integration (ARDL) and Error Correction Model. The study uses the Augmented- Dickey-Fuller test to check the unit root. The study has analyzed the time series data of Pakistan from 1985 to 2021.The research finds that health indicators like: Life expectancy and Infant mortality increase the GDP per Capita in the long run. The health indicators also have positive effects on education and as a result, Education increases the GDP per capita in the short- run and long run. The research concludes that improvement in human capital leads to decrease the poverty and to improve the health and education sectors of the society. The major policy implication of this study is that to decrease poverty and look for a healthy and educated society, then the government should urgently and seriously focus on the health sector of Pakistan.

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Section: Literature Reviewmentioning

confidence: 99%

Impact of Human Capital on Poverty Reduction in Pakistan

Naweed¹,

Saeed²,

Ali³

2022

iRASD J. Eco.

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“…Many studies have established that healthier workers are more productive (Weil 2005) and earn higher wages (Rivera and Currais 2005;Schultz 2005). In Latin America, workers with 6 years of education earn 50% more than those without any education.…”

Section: Labor Marketmentioning

confidence: 99%

What Makes Cities Healthy ?

Yusuf¹,

Nabeshima²,

Ha³

2007

Policy Research Working Papers

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“…Barro ( 9 ) investigates the effect of health capital on economic growth by adding health to the neo-classical growth model and draws a theoretical framework. Schultz ( 10 ) claims that health expenditures have a significant impact on productivity. Agenor ( 11 ) studies the optimal allocation of public health expenditures within the framework of an endogenous economic growth model.…”

Section: Introductionmentioning

confidence: 99%

The relationship between health expenditure indicators and economic growth in OECD countries: A Driscoll-Kraay approach

Beylik¹,

Çıraklı

Çetin

et al. 2022

Front. Public Health

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IntroductionThe main purpose of the study is to examine the relationship between health expenditure indicators and economic growth in OECD countries.MethodsIn this context, health expenditures and economic indicators data of 21 OECD countries were analyzed by the Driscoll-Kraay standard error approach within the scope of panel data analysis. While Gross Domestic Product (GDP) and income per capita were used as dependent variables, the amount of out-of-pocket health spending, per capita health expenditure, the amount of public health expenditure, the ratio of drug expenditures to gross domestic product, the share of current health expenditures in GDP were used as independent variables.ResultsAccording to the results, in the model (Model 1) where real GDP level was used as the dependent variable, all health expenditure indicators were positively related to the economic growth. When the estimation results of Model 1 are examined, it is predicted that there will be an increase of 0.09% in GDP in case of a 1% increase in the share allocated to health services from GDP. In case of a 1% increase in the amount of out-of-pocket spending on healthcare, it is foreseen that there may be an increase of 0.04% in the real GDP. In the model (Model 2) where the per capita income variable is the dependent variable, it is seen that the increase in out- of-pocket health spending has a decreasing effect on the per capita income level, while the increase in public expenditures has an increasing effect on the per capita income level. From the findings of Model 2, it was found that if a 1% increase in the share of current health expenditures in GDP, there may be an increase of 0.06% in the amount of per capita income.DiscussionConcludingly, it is possible to say that that public resources allocated to health services play an important role in the economic growth.

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Productive Benefits of Health: Evidence from Low-Income Countries

Cited by 36 publications

References 28 publications

Impact of Human Capital on Poverty Reduction in Pakistan

Impact of Human Capital on Poverty Reduction in Pakistan

What Makes Cities Healthy ?

The relationship between health expenditure indicators and economic growth in OECD countries: A Driscoll-Kraay approach

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